A demand side approach for congestion management in competitive environment

Abstract

AbstractThis paper proposes an approach for transmission congestion management (CM) in a deregulated power system. Transmission congestion mitigates network efficiency and results in increasing electricity price. Congestion can be effectively eliminated through several methods either by building a new transmission line or by increasing the capacity of the original line between congested zones. This paper evaluates the using of Demand Response (DR) programs in order to managing the congestion. For this purpose, a coordination process between GENCOs and the Independent System Operator (ISO) is considered. In the proposed approach, the coordination is modeled as a two‐stage process. At first, GENCOs apply price‐based unit commitment and submit their bids to the ISO for maximizing their profits. Then, the ISO clears the market using Day‐Ahead Demand Response Program (DADRP). Now, if any transmission violation exists, the ISO will run re‐dispatching of GENCO bids using Emergency Demand Response Program (EDRP) for minimizing the CM cost as well as omitting line flow violations. Numerical studies based on IEEE 57‐bus system are performed for the evaluation of the method. Copyright © 2009 John Wiley & Sons, Ltd.